Equity Lifestyle (ELS) AI Stock Analysis

• Market Cap: $12.56B
• Dividend Yield: 3.27%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.09
• Revenue Growth: -0.03%
• EPS Growth: 1.00%
• Country: US
• Employees: 3,800
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.42
• Shares Outstanding: 193,789,750
• 10 Day Avg. Volume: 1,559,480
• 30 Day Avg. Volume: 1,643,111
• PEG Ratio: 3.00
• Price to Book (P/B): 7.13
• Price to Sales (P/S): 8.13
• P/FCF Ratio: 34.91
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 10.39
• Enterprise Value/Gross Profit: 21.33
• Enterprise Value/Ebitda: 22.99
• 1Y Price Target: $67.65
• Price Target Upside: 9.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: $67.00 ▲(8.19% Upside)

ELS's overall stock score is driven by strong financial performance and a positive earnings call outlook, highlighting growth and strategic investments. However, high valuation and technical indicators showing weak momentum are concerns. The company's strengths in profitability and strategic positioning are balanced by challenges in specific segments and valuation concerns.

Positive Factors

High Occupancy Rates

High occupancy rates in the manufactured housing portfolio indicate strong demand and stable revenue streams, reducing turnover and increasing tenant retention, which supports long-term financial stability.

Strategic Investments

Strategic investments in key markets like Florida, California, and Arizona enhance growth potential and market presence, positioning the company to capitalize on regional demand and demographic trends.

Stable Financial Position

A stable financial position with a solid balance sheet and no near-term debt maturities ensures financial flexibility and resilience, supporting long-term operational and strategic initiatives.

Negative Factors

Challenges in RV and Marina Segments

Challenges in the RV and marina segments, including higher turnover and storm damage, may impact revenue stability and growth, necessitating strategic adjustments to mitigate these risks.

Seasonal and Transient Revenue Decline

Declines in seasonal and transient revenue highlight vulnerabilities in revenue streams that could affect overall financial performance, requiring diversification and stabilization efforts.

Impact of Canadian Travel Patterns

Changes in Canadian travel patterns affecting Sunbelt demand could lead to reduced occupancy and revenue, emphasizing the need for market diversification and adaptive strategies.

Equity Lifestyle Business Overview & Revenue Model

Company Description

We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 25, 2021, we own or have an interest in 423 quality properties in 33 states and British Columbia consisting of 161,229 sites.

How the Company Makes Money

Equity Lifestyle Properties generates revenue through multiple key streams, primarily from the leasing of land in its manufactured home communities and RV parks. The company charges monthly lot rents to residents, which constitute the bulk of its revenue. Additionally, ELS earns income from the sale of homes situated in its communities, as well as from rental agreements for transient RV sites. The company may also benefit from ancillary services such as utilities, storage, and amenity fees. Significant partnerships with home manufacturers and service providers can enhance its revenue potential, while the growth in demand for affordable housing and recreational living contributes positively to its earnings.

Equity Lifestyle Financial Statement Overview

Summary

Equity Lifestyle (ELS) shows strong financial performance with robust revenue growth and high profitability margins. The balance sheet is stable despite high leverage typical for REITs. However, cash flow reporting issues present some concerns, limiting the analysis of current cash generation capabilities.

Income Statement

Equity Lifestyle (ELS) has demonstrated robust revenue growth with the latest annual revenue increasing to $1.53 billion, showing strong growth from the previous year. The company's gross profit margin stands at 63.2%, indicating efficient cost management. The net profit margin improved to 25.2%, reflecting enhanced profitability. The EBIT margin is impressive at 59.2%, and the EBITDA margin is 38.3%, highlighting strong operational performance. Overall, ELS shows solid growth and profitability metrics indicative of a well-managed company in the REIT sector.

Balance Sheet

ELS has a debt-to-equity ratio of 1.84, indicating significant leverage but within acceptable limits for a REIT. The return on equity (ROE) is strong at 22.1%, showcasing efficient use of equity to generate profits. The equity ratio stands at 30.8%, suggesting a stable capital structure with a reasonable level of assets financed by equity. Despite the high leverage, ELS maintains a solid equity base, supporting its financial stability.

Cash Flow

The cash flow analysis shows a challenge, as the operating cash flow is reported as zero in the latest period, possibly due to reporting changes or adjustments. The previous year's free cash flow was positive, demonstrating the ability to generate cash. However, the lack of current cash flow data limits the analysis. The cash flow to net income ratios from previous years indicate moderate cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.51B	1.43B	1.40B	1.37B	1.25B	1.11B
Gross Profit	734.35M	708.01M	672.53M	644.56M	596.28M	569.54M
EBITDA	681.29M	731.57M	660.63M	622.44M	576.15M	496.55M
Net Income	370.88M	367.01M	314.21M	284.63M	262.48M	228.28M
Balance Sheet
Total Assets	5.64B	5.65B	5.61B	5.49B	5.31B	4.42B
Cash, Cash Equivalents and Short-Term Investments	0.00	5.58M	4.24M	2.65M	94.10M	24.06M
Total Debt	3.09B	3.20B	3.52B	3.39B	3.27B	2.67B
Total Liabilities	3.81B	3.82B	4.12B	3.98B	3.82B	3.11B
Stockholders Equity	1.75B	1.74B	1.43B	1.45B	1.42B	1.23B
Cash Flow
Free Cash Flow	360.71M	355.44M	230.92M	226.54M	304.76M	249.46M
Operating Cash Flow	592.49M	596.72M	548.00M	475.81M	509.03M	417.41M
Investing Cash Flow	-209.99M	-217.84M	-324.75M	-402.07M	-828.43M	-401.25M
Financing Cash Flow	-254.13M	-384.24M	-215.66M	-174.80M	418.74M	-20.96M

Equity Lifestyle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELS, the sentiment is Positive. The current price of 61.93 is above the 20-day moving average (MA) of 60.34, above the 50-day MA of 59.98, and below the 200-day MA of 62.76, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 89.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELS.

Equity Lifestyle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	75 Outperform	$16.29B	12.72	-1.51%	6.12%	-14.17%	1097.53%
AMH	74 Outperform	$12.11B	29.37	5.99%	3.55%	7.19%	15.70%
ELS	69 Neutral	$12.56B	33.52	23.16%	3.27%	-0.03%	1.00%
EQR	68 Neutral	$24.17B	24.22	9.20%	4.35%	4.49%	5.87%
UDR	68 Neutral	$12.05B	94.89	3.74%	4.70%	2.29%	-4.89%
CPT	67 Neutral	$14.75B	72.71	3.30%	4.01%	0.76%	-60.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%